- Restructuring plan meetings convened on tight timetable in face of strong landlord opposition (Re Virgin Active Holdings Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Urgency of proceedings vs lack of time for creditors to consider proposals
- Commercially sensitive information vs inadequate disclosure
- Classification of claims
- Case details
Restructuring & Insolvency analysis: This judgment relates to the convening hearing for several restructuring plans under section 901C of the Companies Act 2006. The plans are proposed by three UK entities in the Virgin Active group. In the face of opposition from a number of the plan companies’ landlord creditors and other ‘General Property Creditors’, Mr Justice Snowden accepted Virgin Active’s evidence of urgency and ordered that the plan meetings take place on 16 April 2021 (ie less than the 21 days’ notice which is normally regarded as the minimum in a complex case). However, continuing a trend that has developed in recent scheme of arrangement cases, Snowden J directed that plan creditors would be entitled to raise any relevant issues at the sanction hearing. Although classification may ultimately be challenged at sanction, the judgment also provides helpful guidance on the classification of landlord claims for the purposes of a restructuring plan. Written by Riccardo Alonzi, associate, at Skadden, Arps, Slate, Meagher & Flom (UK) LLP.
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